Short-Term Debt

9 Months Ended

Sep. 30, 2021

We enter into repurchase agreements ("repo"), loan warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At September 30, 2021, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants.

The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at September 30, 2021 and December 31, 2020.

Table 13.1 – Short-Term Debt


	September 30, 2021
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate (1)		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	7	$	1,335,464	$	2,700,000	1.89	%	11/2021-8/2022	156

Business purpose loan warehouse	2	183,800		350,000		3.39	%	3/2022-7/2022	201
Real estate securities repo	3	79,766		—		1.23	%	10/2021-12/2021	34

Total Short-Term Debt Facilities	12	1,599,030
Servicer advance financing	1	151,911		260,000		1.89	%	11/2021	61

Total Short-Term Debt		$	1,750,941


	December 31, 2020
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate (1)		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	4	$	137,269	$	1,300,000	2.45	%	1/2021-11/2021	268

Business purpose loan warehouse	2	99,190		500,000		3.37	%	5/2022-6/2022	521
Real estate securities repo	3	77,775		—		2.24	%	1/2021-3/2021	36
Total Short-Term Debt Facilities	9	314,234
Servicer advance financing	1	208,375		335,000		1.95	%	11/2021	334

Total Short-Term Debt		$	522,609

(1)Borrowings under our facilities are generally uncommitted and charged interest based on a specified margin over the 1- or 3-month LIBOR.

The following table below presents the value of loans, securities, and other assets pledged as collateral under our short-term debt at September 30, 2021 and December 31, 2020.

Table 13.2 – Collateral for Short-Term Debt


(In Thousands)	September 30, 2021		December 31, 2020
Collateral Type
Held-for-sale residential loans	$	1,478,424	$	156,355
Business purpose loans	254,655		127,029
Real estate securities
On balance sheet	14,367		23,193
Sequoia securitizations (1)	62,075		63,105

Freddie Mac K-Series securitization (1)	31,388		28,255

Total real estate securities owned	107,830		114,553
Restricted cash and other assets	1,709		315
Total Collateral for Short-Term Debt Facilities	1,842,618		398,252
Cash	12,975		9,978
Restricted cash	19,872		23,220
Servicer advances	159,408		217,656
Total Collateral for Servicer Advance Financing	192,255		250,854
Total Collateral for Short-Term Debt	$	2,034,873	$	649,106

(1)Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations.

For the three and nine months ended September 30, 2021, the average balances of our short-term debt facilities were $1.98 billion and $1.61 billion, respectively. At September 30, 2021 and December 31, 2020, accrued interest payable on our short-term debt facilities was $2 million and $1 million, respectively.

Servicer advance financing consists of non-recourse short-term securitization debt used to finance servicer advance investments. We consolidate the securitization entity that issued the debt, but the entity is independent of Redwood and the assets and liabilities are not owned by and are not legal obligations of Redwood. At September 30, 2021, the accrued interest payable balance on this financing was $0.1 million and the unamortized capitalized commitment costs were $0.1 million.

We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $2 million at September 30, 2021. At both September 30, 2021 and December 31, 2020, we had no outstanding borrowings on this facility.

Remaining Maturities of Short-Term Debt

The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt at September 30, 2021.

Table 13.3 – Short-Term Debt by Collateral Type and Remaining Maturities


	September 30, 2021
(In Thousands)	Within 30 days		31 to 90 days		Over 90 days		Total
Collateral Type
Held-for-sale residential loans	$	—	$	278,663	$	1,056,801	$	1,335,464
Business purpose loans	—		—		183,800		183,800
Real estate securities	43,800		35,966		—		79,766
Total Secured Short-Term Debt	43,800		314,629		1,240,601		1,599,030
Servicer advance financing	—		151,911		—		151,911

Total Short-Term Debt	$	43,800	$	466,540	$	1,240,601	$	1,750,941